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WASHINGTON— Today, Congresswoman Kristen McDonald Rivet (MI-08), Congressman Buddy Carter (GA-01), Congressman Rob Menendez (NJ-08) and Congressman John James (MI-10) introduced the Prescription Drug Transparency and Affordability Act to increase transparency in the prescription drug pricing system with new reporting requirements and penalties to hold those who fail to comply accountable.
“We need to lower prescription drug costs for seniors and families. I speak to people almost every day who are forced to choose between filling their prescription and putting food on the table, or keeping a roof over their head,” said Congresswoman McDonald Rivet. “With this bill, we’re bringing much-needed transparency to how drugs are priced in this country, which will ultimately push prices down and make things easier for consumers.”
“As a pharmacist serving in Congress, one of my main priorities is to help more Americans access affordable, quality health care. The Prescription Drug Transparency and Affordability Act advances that goal by increasing transparency and accountability for Pharmacy Benefit Managers (PBMs), ensuring our health care system puts patients before profits,” said Congressman Carter.
“Americans have rightly demanded lower costs for prescription drugs, and our pricing transparency bill aims to do just that,” said Congressman Menendez. “Greater access to prescription drug pricing information will enable patients and employers to make better-informed decisions – a commonsense solution that benefits all Americans.”
“Tackling inflation is my top priority and there is no better place to do that than by lowering the prices of your medications,” said Congressman James. “The days of Big Pharma profiting from your pain are over. Americans deserve quality and affordable health care of their choosing. The Prescription Drug Transparency and Affordability Act is a market-based approach that returns the power to you.”
The bipartisan legislation increases oversight of Pharmacy Benefit Managers (PBMs) and others who serve as intermediaries between insurers, drug manufacturers and pharmacies. Specifically, it would introduce reporting requirements, where PBMs must disclose financial transactions related to prescription drug pricing. Organizations that fail to report the required information or provide false information would face penalties of up to $100,000 per violation. The bill would also instruct the Department of Health and Human Services to ensure all reports are publicly available.
The Congressional Budget Office estimated a similar piece of legislation from a previous Congress would save consumers approximately $2.3 billion over 10 years.
The full text of the bill can be found here.
